Hana Bank (China) Ltd. signed an agreement with China Minsheng Investment Corp. to set up a joint-venture leasing business — a field that has been experiencing substantial growth — thanks to policy support from the Chinese government.
The Bank will analyze prospective businesses to pursue within the year. It is also looking into the possibility of handling microloans.
Hana Bank (China) Ltd. envisions strengthening local businesses through long-term collaboration between banking and non-banking sectors, as well as promoting synergy with domestic subsidiaries of the Group.
The China Minsheng Investment Corp. is the largest private investment company in China, established in August 2014 with registered capital of 50 billion yuan (8.7 trillion won).
As a Chinese version of JP Morgan, the company expects to make a significant contribution to the growth of the real economy through private investment.
It’s major roles include structural adjustment of industries with excessive capacity, M&A investment, promotion of private investment in energy, international logistics, real estate and finance.
The private investment company is the largest in China with some 59 private firms participating as investors and seven affiliated firms in such areas as finance, solar energy, aviation, logistics and real estate.
Hana Bank is expected to hold a 25 percent stake, or 132 billion won, in the projected joint venture leasing company, with the right to name a director and a vice president.
The projected leasing company is considering engaging in logistics, energy and medical businesses, which are expected to grow rapidly. China’s leading market is valued at $89 billion at the end of 2013 growing around 10 percent annually since 2010, President Kim Beoyong-ho said adding that the bank is fortunate to have such a strong company as China Minsheing Investment Corp. as its partner. Its affiliate, Hana Investment and Securities co., has also signed an agreement with China Minsheng International Capital Co. on overall cooperation, including the exchange of information and sharing of business opportunities, among others.
Hana Bank and Hana Capital plan to sign a joint venture agreement with Sinamas, a conglomerate in Indonesia, to set up a installment financing company in joint venture, called “PT Sinamas Hana Finance as part of Hana Financial Group’s plan to earn 25 percent of its total annual earnings to come from overseas by 2025.
The Hana Financial Group has been stepping up its reach around the world in an effort to rank among the top 50 global financial firms by 2015, the group said recently.
The financial group has been working to build its financial network in Asia, linking China, Hong Kong, Vietnam, India, Indonesia, Singapore and the Philippines, and in 2015, the financial group will jump over the Asian boundary and expand its financial operations in other regions including the United States and Europe.
Hana’s global operations can be divided into four regions, which are the Chinese sphere, the Southeast Asian sphere, the North American sphere and the European sphere, with the group aiming to expand the overseas share of its assets to 10 percent and earnings to 15 percent of the total by 2015.
The key word for the group’s overseas operation is localization. It has been pushing the strategy hard in such countries as China, Indonesia, the U.S. and Canada. The two key affiliates of the group, Hana and the Korea Exchange Bank, have been closely cooperating to advance their operations in China. Hana Bank has its head office for its China operations in Beijing, while KEB’s operation is centered in Tianjin where large Korean communities and firms are located. The two banks have been trying to provide financial services to Korean residents and businesses as well as local clients in those cities and their vicinities, which have so far been very successful.
PT Bank Hana, a wholly-owned subsidiary in Indonesia, has been operating both retail and corporate banking, while PT KEB Indonesia has been focused on Korean firms operating in Indonesia with its 37 banking outlets in the Southeast Asian country.
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